Few things spark more anxiety than the words: “You’re being audited by the IRS.” Whether you’ve received a letter, a phone call, or are worried one might be coming, understanding what an IRS audit means—and how to prepare—can help you protect your finances, your peace of mind, and your future.
At Back Tax Rescue, we’ve guided individuals and business owners across Gwinnett County through IRS audits with confidence. In this guide, we’ll explain how audits work, why you might be selected, what to expect, and most importantly—how to handle it like a pro.
🔍 What Is an IRS Audit?
An IRS audit is an official review of your tax return, income, deductions, and financial documents. It’s designed to verify that your tax filings are accurate and complete.
Audits can be triggered by red flags (more on that shortly), random selection, or because the IRS believes you underreported income, overstated deductions, or made other filing errors.
There are three main types of audits:
- Correspondence Audit – Conducted entirely by mail; typically limited to a few issues (e.g., a questionable deduction or missing form).
- Office Audit – You’re asked to bring documents to a local IRS office for review.
- Field Audit – An IRS agent visits your home or business. These are the most in-depth and serious.
⚠️ Why You Might Be Selected for an Audit
Getting audited doesn’t automatically mean you did something wrong. But here are the most common reasons the IRS might flag your return:
- High income or large deductions relative to your earnings
- Unfiled or amended returns
- Schedule C business losses year after year
- Unreported income (e.g., 1099s, rental income, crypto gains)
- Large charitable donations
- **Claiming the Earned Income Tax Credit or Child Tax Credit
- Math errors or inconsistent information
✅ Pro Tip: The IRS uses automated systems to identify returns that don’t match expected patterns. They compare your data to employer filings, third-party statements, and national averages.
📬 What Happens When You’re Audited?
- You’ll Receive an IRS Audit Notice
The notice will include a specific issue or range of years under review. It will tell you whether it’s a mail audit, office audit, or field audit. - You’ll Be Asked to Provide Documentation
This might include W-2s, 1099s, receipts, bank records, proof of expenses, or logs related to mileage, business use, or charitable contributions. - You’ll Have the Right to Representation
You are not required to face the IRS alone. You can (and should) have a licensed tax professional represent you throughout the audit process. - The IRS Will Issue a Determination
They’ll either accept your documentation, adjust your return, or propose changes. You’ll be given a chance to agree or appeal.
🧠 How to Prepare for an Audit (Step-by-Step)
1. Read the Audit Letter Carefully
Don’t assume it’s a full audit—it might only be focused on one issue. Know what they’re requesting and when the deadline is to respond.
2. Gather All Relevant Documents
This includes receipts, ledgers, bank statements, tax forms, and supporting paperwork tied to the issue in question.
3. Stay Organized
Organize your records by category and by year. If anything is missing, make a list of what you need and try to retrieve duplicates (e.g., contacting your bank or vendors).
4. Avoid Volunteering Extra Info
Answer only what is asked. Don’t supply unnecessary documents or explanations—they may trigger deeper inquiries.
5. Hire a Tax Professional Early
The sooner you involve a tax resolution expert, the better your defense strategy. At Back Tax Rescue, we act as your representative, speak to the IRS on your behalf, and protect your rights from start to finish.
📉 What If You Lose the Audit?
If the IRS disagrees with your documentation or believes you owe more taxes, you’ll receive a notice of proposed adjustment. From there, you have several options:
- Accept the adjustment and pay the balance
- Request a payment plan or Offer in Compromise
- File an appeal or request a reconsideration
- Dispute the results in Tax Court (if needed)
📌 Ignoring the results can lead to enforced collection—like liens, levies, or garnishments.
💼 How Back Tax Rescue Supports You During an Audit
Audit letters can be intimidating—but we help you respond with clarity and strength.
We provide:
- Full IRS audit representation so you don’t face them alone
- Document review and preparation to build your strongest case
- Direct IRS communication so you don’t have to speak to agents
- Appeal and resolution support if the audit doesn’t go in your favor
Whether your audit was triggered by a missing form, business losses, or a complex return, we’ve helped clients in Norcross, Sugar Hill, Peachtree Corners, and beyond navigate audits successfully.
📞 Don’t Wait Until It’s Too Late—Get Audit Help Today
The IRS is methodical, but you have rights. The sooner we step in, the more control we’ll have over the outcome.
📞 Call Back Tax Rescue: 470-699-1187
📧 Email: info@backtaxrescue.com
🗓️ Schedule Your Free Audit Consultation »
Let’s protect your income, your records, and your peace of mind—starting now.
